Determination of Ownership for the Purposes of Financial Responsibility

(1) Any person whose name appears as an owner on the vehicle registration will be considered an owner for the requirements of the financial responsibility laws (financial responsibility), ORS Chapter 806, unless exempted under sections (3) through (5) of this rule. Unless otherwise provided, any person seeking an exemption under this rule must furnish the Driver and Motor Vehicle Services Division of the Department of Transportation (DMV) with:

(a) A signed affidavit setting forth the reasons the person should not be considered an owner for purposes of financial responsibility; and

(b) An affidavit signed by the person who has the primary ownership interest in the vehicle explaining why he or she should be considered the owner for purposes of financial responsibility. This affidavit may be waived if DMV determines it is unfeasible to obtain the affidavit.

(2) Where the owners are married or in a domestic partnership and living together, both are considered owners.

(3) Where the owners are married or in a domestic partnership and living apart, an owner may be exempted from the requirements of financial responsibility by providing proof there has been a complete relinquishment of the vehicle by such owner to the other owner. Proof includes, but is not limited to, a separation agreement showing the date ownership of the vehicle was relinquished, or the affidavits described in section (1) of this rule.

(4) Where the marriage or domestic partnership of joint owners of a vehicle is dissolved it is the responsibility of the owner who obtains possession of the vehicle through a dissolution decree to transfer the title by presenting an application for transfer of title and a copy of the dissolution decree to DMV. If the owner awarded ownership of the vehicle by decree fails to transfer the title and is involved in an uninsured accident, the other owner may be exempted from the requirements of financial responsibility if proof is provided to DMV that his or her ownership interest has been extinguished by a dissolution decree. The person must present an affidavit that he or she no longer has possession or use of the vehicle and a copy of the dissolution decree to DMV.

(5) Where the owners are not married and not in a domestic partnership, an owner may be exempted from the requirements of financial responsibility when DMV determines the person does not have the right to immediate possession and use of the vehicle. DMV may consider the following as proof of the right to immediate possession and use:

(a) Documentation one owner has paid or is paying all or a substantial part of the purchase price of the vehicle;

(b) Documentation one owner has paid the major portion of the vehicle’s maintenance and operation costs; and

(c) Documentation or an affidavit showing one owner uses the vehicle the greater amount of time.

(6) When an owner transfers his or her interest in a vehicle by sale or otherwise (transferor), and transfers possession of the vehicle to the new owner (transferee), the transferor is considered the owner for purposes of financial responsibility unless:

(a) An application for transfer of title has been presented to DMV; or

(b) The transferor provides proof satisfactory to DMV that his or her interest in the vehicle has been transferred and showing that the transferee has the right to immediate possession and use of the vehicle. Such proof includes, but is not limited to, a written purchase agreement or bill of sale signed by the transferee or the affidavits described in section (1) of this rule.

(1) ORS 811.720 establishes when an accident must be reported to the Driver and Motor Vehicle Services Division of the Department of Transportation (DMV). If one person reports an accident and provides information that another party must report the accident, the second party may dispute the circumstances of the accident and the requirement to report to DMV. DMV must suspend driving privileges if a party involved in an accident fails to file an accident report when required.

(2) If DMV issues a suspension notice resulting from information that a party involved in an accident has failed to file an accident report as required, the party may provide proof to the DMV Accident Reporting Unit that the accident is not reportable. Proof of vehicle damage or injury must apply only to the party's vehicle or its occupants. Acceptable proof includes, but is not limited to, the following:

(a) A repair bill or estimate from an automotive repair business or statement from an insurance company responsible for paying the damage claim, showing damage to the party's vehicle is less than $1500;

(b) A repair bill or estimate, statement from an insurance company responsible for paying the damage claim or a statement from the owner of the property, showing damage to property other than a vehicle involved in the accident is less than $1500;

(c) The party's sworn statement that his or her vehicle was not towed from the accident scene. The statement must be notarized; or

(d) The party's sworn statement or a statement from the insurance company responsible for the damage claim that no person in the party's vehicle was injured as a result of the accident. The party's statement must be notarized.

(3) After reviewing the information provided, DMV will send a notice to the party stating whether or not an accident report must be filed with DMV.

(4) If DMV determines that the accident was not reportable for the party, DMV will stop or rescind any proposed suspension of the party's driving privileges.

(5) If DMV determines that the accident was not reportable for any party involved, DMV will remove the accident from the driving record of each party.

(6) For purposes of this rule, "party" means the driver or owner of a vehicle involved in an accident occurring on a highway or upon premises open to the public.

(1) All applicants for self-insurance certificates pursuant to ORS 806.130 must apply by means of the "Application for Self-Insurance Certificate," Form Number 735-6798.

(2) DMV will issue a non-expiring self-insurance certificate to any applicant who:

(a) Certifies they are a local public body, as defined in ORS 30.260, which establishes a self-insurance program under ORS 30.282 for or on account of the operation of motor vehicles within the local public body's control;

(b) Certifies they are a public body, as defined in ORS 30.260, which insures the operation of motor vehicles within the public body's control under the provisions of ORS Chapter 278 or by contract with the Department of Administrative Services under ORS 30.282(4).

(c) Certifies that they are a federal agency of the United States; or

(d) Provides a certified copy of the Federal Motor Carrier Safety Administration written decision, order or letter authorizing the applicant's self-insured status.

(3) DMV will issue a self-insurance certificate that is valid for one year from the date of issuance to a qualified applicant who provides:

(a) An annual financial report issued within the last 12 months that shows to the satisfaction of the Department that the applicant has retained earnings in an amount as set forth is section (4) of this rule. The financial report must be an audited or reviewed report and contain statements and footnotes as required by generally accepted accounting principles, be signed by a licensed public accountant or a certified public accountant.

(b) A list of each vehicle that will be covered by the self-insurance certificate, including type of vehicle, plate number or vehicle identification number (VIN).

(c) A three-year motor vehicle accident history statement including the total number of motor vehicle accidents, accident claims against the applicant, claims satisfied, and judgments settled.

(d) A certification that the applicant:

(A) Has no unsettled judgments of the type described in ORS 806.040. For purposes of this subsection, a judgment is settled as described in ORS 809.470;

(B) Has more than 25 motor vehicles registered in the applicant's name; and

(C) Agrees to pay the same amounts with respect to an accident occurring while the self-insurance certificate is valid that an insurer would be obligated to pay under a motor vehicle liability policy, including uninsured motorist coverage and liability coverage to at least the limits specified in ORS 806.070.

(4) In order to satisfy the department that the applicant for self-insurance is qualified, the financial report required by section (3)(a) of this rule must show retained earnings available to pay and discharge judgments described under ORS 806.040 equal to or above the limits required by this based on type and number of vehicles. A fleet of mixed vehicle types must use the figures for the predominant vehicle type. The department may require a higher retained earnings amount than is listed in this rule, as determined by the department, if from the applicant's motor vehicle accident statement the department has reason to believe the applicant's accident rate is too high. The requirements are as follows:

(5) To be reissued a one-year self insurance certificate that continues the certification without interruption, the holder of a current certificate must provide the documents and certifications described in section (3) of this rule at least 30 days prior to expiration of the current certificate.

(6) DMV may cancel a self-insurance certificate if any of the following circumstances occur:

(a) DMV has a reasonable basis to believe that any of the information contained in the application or supporting documents submitted by an applicant is false;

(b) DMV learns that the self-insurance certificate holder has failed to settle any judgment described under ORS 806.040 within 60 days after it has become final. For purposes of this subsection, a judgment is settled as described under ORS 809.470; or

(c) Authorization for self-insurance has been revoked by the Federal Motor Carrier Safety Administration.

Content of Uniform Financial Responsibility Certificate and Procedure for Processing

(1) A person required to file a certificate of insurance, for purposes of proving future responsibility, must submit a Uniform Financial Responsibility Certificate (SR-22).

(2) An SR-22 will not be accepted unless it contains:

(a) The insured’s complete name and address. If two names are on the certificate, it will not be accepted. The only exception is an “on-behalf-of” certificate. An “on-behalf-of” certificate is filed by an owner of a motor vehicle, showing proof of financial responsibility on behalf of their employee or a member of their immediate family in lieu of the driver furnishing such proof. The filing of this type of certificate only permits the person to operate a motor vehicle covered by the proof;

(b) The insured’s driver license number and date of birth;

(c) The insurance carrier name, not the name of the insurance producer (agent). The carrier name is acceptable if preprinted on the back of the form, or typed on the front;

(d) The policy number;

(e) The effective date of the certification;

(f) A box must be checked to show whether the policy is for an operator or an owner;

(g) Information showing that the certificate is issued as proof of financial responsibility in Oregon;

(h) A certification by an authorized representative of the insurance carrier that a motor vehicle liability policy as required by the financial responsibility laws of Oregon, and in effect on the effective date of the certification, has been issued to the insured named on the SR-22;

(i) The date the SR-22 was issued. An SR-22 received by DMV more than 30 days after the date it was issued will not be accepted;

(j) The signature of the authorized representative of the insurance carrier. An electronic signature as described in OAR 735-018-0010(3) and 735-018-0060 constitutes a signature for purposes of this rule; and

(k) A secured internet Web site address at the bottom of the form if the SR-22 is provided to DMV in Web site format.

(3) The certification in subsection (2)(h) of this rule is a declaration of the issuing insurance carrier that:

(a) The policy covers all vehicles that are registered in the name of or operated by the named insured, except as provided in ORS 806.270(2); and

(b) If applicable, it has assumed the higher liability limits required for a Driving Under the Influence of Intoxicants conviction under the financial responsibility laws of Oregon as required by ORS 806.075.

(4) The insurer issuing the certificate must be authorized by the Insurance Division of the Oregon Department of Consumer and Business Services to do business in Oregon, unless the insurer is an eligible surplus lines insurer of a risk retention group.

(1) This rule specifies the information that constitutes satisfactory proof of compliance with financial responsibility requirements for the purposes of vehicle registration renewal under ORS 803.460.

(2) Information that a motor vehicle liability insurance policy has been issued for a vehicle applying for renewal of registration, submitted by insurers under ORS 742.580, 806.195, and OAR 735-050-0130 through 735-050-0160, constitutes satisfactory proof of compliance with financial responsibility requirements, unless DMV has reason to believe that the information is incorrect or outdated, or that the policy has been cancelled or not renewed.

(3) Nothing in this rule shall be construed to prevent DMV:

(a) From requiring an applicant for vehicle registration renewal to certify compliance with financial responsibility requirements, as set forth in ORS 803.460(1); and

(b) From using any information submitted by insurers under ORS 742.580, 806.195 and OAR 735-050-0130 through 735-050-0160, to verify the accuracy of any certification of compliance with financial responsibility submitted by the owner of a vehicle, or for any other purpose related to enforcement of compliance with financial responsibility requirements.

Good Faith Belief of Compliance with Financial Responsibility Requirements -- Purpose and Definitions

(1) The Driver and Motor Vehicle Services Division of the Department of Transportation (DMV) will terminate future responsibility filing requirements and rescind a financial responsibility suspension of a person’s driving privileges as allowed by ORS 806.245, 809.380 and 809.450 when the person:

(a) Is currently in compliance with financial responsibility requirements; and

(b) Reasonably and in good faith believed he or she was in compliance at the time of the accident or DMV’s letter of verification.

(2) For purposes of OAR 735-050-0060 through 735-050-0064 “good faith” means a state of mind of honesty in purpose and freedom from intent to defraud. Failure of a person to inquire further when the person could reasonably be expected to do so constitutes absence of good faith.

(3) For purposes of OAR 735-050-0060 through 735-050-0064, “reasonably believed” or “reasonable belief” means a belief based on the combinations of facts that existed and the circumstances that a person knew, or with ordinary diligence should have known, which would give cause for a rational person to believe.

(4) It is presumed that a person has knowledge of the contents of his or her motor vehicle liability insurance policy.

(5) DMV will rescind a suspension under this rule if DMV is presented with evidence that the person reasonably and in good faith believed that the person was in compliance with financial responsibility requirements. Evidence for the above may be presented to the Accident Reporting and Insurance Verification Unit or at a hearing requested by the person. In either case, examples of such evidence include, but are not limited to, the following:

(a) Copies of cancelled checks, money orders or receipts for cash that show payment was received for an automobile liability insurance policy;

(b) Written verification on agency or company letterhead or sworn testimony from the insurance carrier or insurance producer (agent);

(c) Copies of insurance policies, binders, declarations or applications; and

(d) Notarized written statements or sworn testimony from a spouse, partner in a domestic partnership, co-owner of current or former policies or any other person involved in the payment of policy premiums.

(6) A person is entitled to a hearing on rescinding of the suspension of the person’s driving privilege under this rule. A determination by the Accident Reporting and Insurance Verification Unit that the suspension should not be rescinded does not limit the person’s right to a hearing.

(1) Examples of circumstances that constitute reasonable and good faith belief include, but are not limited to, the following:

(a) An insurance company accepted application and payment for liability insurance covering the period of time in question;

(b) An insurance carrier or producer (agent) told a person that he or she was insured or would be insured by a particular policy, and the person was not told otherwise until after the accident or the Driver and Motor Vehicle Services Division of the Department of Transportation (DMV) random sample;

(c) A separated spouse, partner in a domestic partnership, or other additional holder of an insurance policy cancels the policy without the person’s knowledge and consent as shown by:

(A) Proof of legal separation; or

(B) A written statement from the party canceling the policy; and

(d) A person is not yet 21 years old, is attending school or is in the military service and believes he or she is covered by a parent’s policy.

(2) DMV will use the examples in section (1) of this rule as guidelines in making decisions. However, each request for the rescinding of a suspension under this rule will be reviewed on a case-by-case basis.

(1) Examples of beliefs that do not constitute a reasonable and good faith belief include, but are not limited to, the following:

(a) Belief that a vendor’s single interest (VSI) or other policy issued by a dealer or financing institution provides motor vehicle liability coverage. That policy or its declarations must clearly state that it does not provide motor vehicle liability insurance, does not meet financial responsibility requirements or contain some other similar statement;

(b) Belief by a person who is not yet 21 years of age, not attending school or not in military service, and not residing with a parent that he or she is covered by a parent’s policy;

(c) Belief by a person that a policy meets the requirements of the financial responsibility law when the person has not read the policy declarations and limitations;

(d) Belief that a policy is still in force because of non-receipt of a notice of cancellation, unless the person presents substantial evidence showing that the insurance company did not meet the notification requirements for cancellation found in ORS Chapter 742;

(e) Belief that a spouse or partner in a domestic partnership, normally pays all bills and must have paid an insurance premium; and

(f) Belief based only upon an insurance carrier’s or insurance producer’s (agent) representation after an accident has occurred when, at the time of the accident, the person did not reasonably believe that they were covered.

(2) The Driver and Motor Vehicle Services Division of the Department of Transportation will use the examples in section (1) of this rule as guidelines in making decisions. However, each request for the rescinding of a suspension under this rule will be reviewed on a case-by-case basis.

(1) The Driver and Motor Vehicle Services Division of the Department of Transportation (DMV) will suspend the driving privileges and right to apply for driving privileges of any person if the person is involved in any motor vehicle accident at any time when DMV determines the person has been driving uninsured.

(2) DMV will determine that a person was the driver of a vehicle involved in an accident if DMV receives a report to that effect from the police, an insurance carrier or insurance producer (agent), or any other person involved in the accident.

(3) If the accident must be reported to DMV, DMV will determine that a person was involved in an accident while driving uninsured if:

(a) The person does not respond to DMV’s request for an accident report;

(b) The person does not respond to DMV’s request for both the name of the insurance carrier and the policy number that covered the person’s operation of the vehicle at the time of the accident; or

(c) The insurance carrier the person stated he or she was insured with denies coverage for the accident.

(4) DMV will grant a pre-suspension hearing under ORS 809.440(1), upon timely request, to any person whose driving privileges are suspended as described in section (1) of this rule. The suspension will not take effect pending the outcome of the hearing and DMV will impose the suspension if the administrative law judge affirms the suspension following the hearing.

(5) Once a suspension described in section (1) of this rule takes effect, DMV will rescind the suspension if the person supplies the name of an insurance carrier and policy number that covered the person’s operation of the vehicle at the time of the accident.

(6) DMV will again suspend the driving privileges if the suspension was rescinded under section (5) and the insurance carrier subsequently denies coverage for the accident. The person will be eligible for full reinstatement of driving privileges one year from the new suspension date.

EXCEPTION: DMV shall subtract time served under the original uninsured accident suspension from the one-year suspension period.

(1) The Driver and Motor Vehicle Services Division of the Department of Transportation (DMV) will randomly select motor vehicles for financial responsibility verification. The total number randomly selected each year will not exceed ten percent of the motor vehicles registered in Oregon that are subject to verification.

(2) DMV may, in addition, designate persons for verification of financial responsibility requirements if DMV has reasonable grounds to believe that the person is in violation of financial responsibility requirements. DMV’s determination of reasonable grounds will be based on the following:

(a) Written statements from police, insurance carriers, insurance producers (agents), and the public;

(b) Any admission to DMV by the owner of an Oregon-registered vehicle that the vehicle is not insured;

(c) Receipt by DMV of any record from another jurisdiction that the owner of any Oregon-registered vehicle was convicted of driving uninsured, regardless of the vehicle driven at the time of offense.

(d) Receipt by DMV of any record from another jurisdiction indicating that an Oregon-registered vehicle was driven without insurance, regardless of who was driving the vehicle;

(e) Statements made during an administrative hearing by a driver or owner of a vehicle that the Oregon-registered vehicle was driven while uninsured; or

(f) No record of submission from an insurance carrier, pursuant to ORS 742.580, 806.195 and OAR 735-050-0130 through 735-050-0160, that a motor vehicle liability insurance policy has been issued.

(3) DMV will use a written statement as identified in section (2)(a) of this rule as a basis for a financial responsibility verification request only if the person making the statement does all of the following:

(a) Signs and dates the request;

(b) Identifies the vehicle that the person believes is being operated in violation of financial responsibility requirements; and

(c) Explains why the person believes the vehicle is being operated in violation of financial responsibility requirements and includes facts that would cause a reasonable person to believe the vehicle is being operated in violation of financial responsibility requirements.

(4) DMV will suspend the driving privileges or right to apply for driving privileges of any person who fails to make a future responsibility filing after failing verification or who falsely certifies compliance with financial responsibility requirements.

(5) A person who fails to make a future responsibility filing after failing verification or who falsely certifies compliance with financial responsibility requirements is entitled to a pre-suspension hearing in accordance with ORS 809.440(1) and 809.415. If no pre-suspension hearing is held, a person may be entitled to a post-imposition hearing in accordance with OAR 735-050-0090.

(b) The revocation
of the person’s driving privileges under ORS 809.235.

(3) The Driver
and Motor Vehicle Services Division of the Department of Transportation (DMV) will
reflect the filing requirement by making an entry on the person's driving record
of the Proof Required Until (PRU) date. The PRU date is three years after the expiration
date of the suspension or revocation.

(4) Thirty
days before the expiration of the suspension or revocation described in section
(2)(a) of this rule, DMV will send the person a notice that a suspension under ORS
809.415(3) will be imposed for failure to make future responsibility filings unless
proof is filed. The suspension notice will specify the suspension for failure to
file proof will begin on the expiration date of the suspension or revocation. Once
a suspension for failure to file proof is imposed, it remains in effect until the
PRU date or until the person files proof, whichever comes first.

(5) When
DMV receives a court order to restore driving privileges under ORS 809.235(5), DMV
will not reinstate driving privileges until the person provides proof. In addition,
upon receipt of the court order DMV will send the person a notice that a suspension
under 809.415(3) will be imposed in 30 days unless proof is filed. Once a suspension
for failure to file proof is imposed, it remains in effect until the PRU date or
until the person files proof, whichever comes first.

(6) A suspension
for failure to file proof will not take effect if the person files proof before
the effective date of the suspension.

For purposes of ORS 806.011 and 806.012,
any of the following constitutes proof of compliance with financial or future responsibility
requirements that must be carried in the motor vehicle covered by such proof:

(1) A current motor vehicle
insurance card issued by the insurer either as a paper card or electronically for
display on a personal electronic device.

(2) An unexpired motor vehicle
liability insurance policy for the particular vehicle that meets the standards set
forth in ORS 806.080;

(3) An unexpired motor vehicle
liability insurance binder issued by the insurance carrier or its authorized insurance
producer (agent) for the particular vehicle that meets the standards set forth in
ORS 806.080;

(4) A letter signed by a
representative from an insurance carrier or its authorized agent, on the insurance
carrier’s or agent’s letterhead, that verifies current insurance coverage;

(5) A certificate of self
insurance issued by the Driver and Motor Vehicle Services Division of the Department
of Transportation (DMV) under ORS 806.130 naming the owner of the particular vehicle;
or

(6) A displayed Oregon dealer
plate unless the vehicle dealer is exempt from the requirement to file a certificate
of insurance under ORS 822.033. If the vehicle dealer is exempt from the insurance
requirements under 822.033, one of the proofs of compliance with financial responsibility
requirements described in sections (1) to (5) of this rule must be carried in the
vehicle displaying the Oregon dealer plate.

(1) The purpose of OAR 735-050-0130 through 735-050-0160 is to establish the information required to be transmitted to DMV by insurance companies and the form in which the information must be transmitted, as required by ORS 806.195.

(2) Implementation of ORS 742.580, 802.270 and 806.195, and OAR 735-050-0130 through 735-050-0160 may be used to augment DMV insurance monitoring programs used in determining uninsured motorist issues but will not affect any financial responsibility requirements.

(3) Insurers must report information to DMV for:

(a) Motor vehicles registered in Oregon;

(b) Motor vehicles based in Oregon if the state of registration is unknown;

(c) Licensed drivers with non-owner policies; and

(d) Organizations with non-vehicle specific policies.

(4) Insurance information for the insurance data base will only be accepted from insurers. Insurance information brought or sent to DMV by the registered owner of a vehicle to update the DMV insurance data base will not be accepted.

(5) Insurers writing fewer than 1000 policies or policies on fewer than 1000 vehicles in Oregon may send information to DMV on diskette or paper.

(6) DMV must give at least 60 days notice to insurers of any change in reporting requirements.

(5) "Insured" means the primary person or organization identified on the insurer records as the named holder for the coverage in force as described in ORS 806.080.

(6) "Insurer" means a person or organization engaged in the business of issuing motor vehicle liability insurance coverage designed to meet either the financial or future responsibility requirements of ORS chapter 806.

(9) "Termination date" means the date a policy or vehicle coverage is canceled, or the date coverage is no longer valid because a person failed to renew. This is inclusive of all grace periods or other interim actions the insurer may allow prior to canceling a policy or vehicle coverage.

(1) All insurers must send insurance information electronically when a new vehicle is added, an insurance policy is issued or upon termination of vehicle coverage or policy coverage within the time limits established under ORS 742.580.

(2) Electronic transmissions must be sent and received using the AT&T Global service or other network service approved by DMV.

(3) The insurer must transmit insurance information to DMV using the ANSI ASC X12 standards, Transaction set 811.

(4) Any data transmitted or received electronically through the network specified by DMV must conform to system specifications. These include data structure, content and format.

(5) DMV will electronically check insurance information to determine the presence of data elements specified in OAR 735-050-0160. If the data elements are not present, DMV will reject the information. If rejected, DMV will electronically notify the insurer. Insurers must resubmit the insurance data, with all required data elements in a timely manner as specified in ORS 742.580.

(6) If an insurer determines any insurance information was submitted in error, insurers must submit a termination of the previous incorrect information and, if applicable, a replacement transaction, simultaneously.

(7) All terminations must include a policy number and vehicle identifiers that match exactly the record to be terminated.

(1) The insurer must transmit the information specified in ORS 742.580, and the data elements established in section (2) of this rule for vehicle specific policies or section (3) of this rule for non-owner or non-vehicle specific policies.

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
The Oregon Administrative Rules and the Oregon Bulletin are
copyrighted by the Oregon Secretary of State. Terms
and Conditions of Use